To Shareholders and Investors
Business Report for the 82nd Term
From April 1, 2014 to March 31, 2015

Protecting Human Life and Mother Earth

Securities Identification Code: 6455

Morita Topics
Morita Group Exhibits at World’s Largest International
Trade Fair for Public Safety “INTERSCHUTZ 2015”
Morita Group ran a booth at “INTERSCHUTZ 2015,” theworld’s largest international trade fair for public safety held
once every five years, from June 8 (Mon) to 13 (Sat) this year.
At the event, Morita introduced to the world a fire truck
designed to extinguish fires without using water. Morita
developed the “Miracle N7” fire truck that is capable offighting fires by generating nitrogen enriched air (NEA), evenif water for fire
extinguishing may bedifficult to find due todamage to water
hydrants or other systems
caused by earthquakes
or other similar disasters. “Habot-mini” fire truck for extinguishing
The first model was
fires without using water
delivered to Japan Nuclear Fuel Limited in September lastyear. A miniature model dubbed the “Habot-mini” wasdeveloped and exhibited at the event, to provide visitors with
an image of fire trucks of the future based on the “Miracle N7”.
Features of the base model “Miracle N7” include operating asa backup fire truck in the event that existing fire extinguishingequipment is unavailable following major disasters, andpreventing explosions (diluting the air) if flammable gases arepresent after a disaster.
The system can increase the concentration of nitrogen toprevent combustion and maintain an oxygen concentration thatis almost harmless to the human body over short periods oftime, allowing people towork in harmful area without
this system. Demand forthe system is expected at oil
storage bases as well as otherplaces where water damage
needs to be avoided, such as
museums, art galleries,
valuable cultural propertiesand data centers.
Miracle N701

M O R I TA R E P O R T 2 0 1 5

The “Habot-mini” that was on show exhibited the samefunctions as the “Miracle N7” and was equipped with anitrogen separation membrane and compressor, anddemonstrated fire extinguishing activities that simulated actual
fire situations.
Another function to improve safety of fire trucks was the“Morita Advanced AM Series” 360° surround camera safetysystem that was jointly
developed with Clarion
C o . , L t d . Tw o m o d e l s
equipped with this system,
the ladder fire truck with
30m top articulated boom
and the multi-purpose fire
Monitor screen of the “Morita
fighting vehicle with 13m
Advanced AM Series”
aerial platform, were onshow at the event. Four cameras mounted on the vehicle bodyprovide video feeds, which are displayed as a high-precisioncomposite image that is calibrated using proprietary image
processing technology to provide the driver with vision aroundthe vehicle to help alleviate concerns while driving. The
system drastically increases safety when driving or arounddisaster sites, and was exhibited as an example of initiatives
taken by Morita for its fire fighting efforts.
Morita will continue using new technologies as part of its
efforts of “Protecting Human Life and Mother Earth.”

Ladder truck with 30m top
articulated boom
Multi-purpose fire fighting vehicle with
13m aerial platform
M O R I TA R E P O R T 2 0 1 5

02

Ideal Fire Extinguisher for People Vulnerable to Fires Jointly
Developed with Chigasaki City, Kanagawa Prefecture
Morita Corporation has collaborated
with Chigasaki City, Kanagawa
Prefecture, where its head office islocated, for the joint development of
the special specification “SPRINEXmini” automatic residential fire
extinguisher that is ideal for
protecting the elderly and others whoare vulnerable to fires.
According to the 2013 Annual Reportcompiled by the Fire Disaster
Management Agency, approximately
one in four deaths caused by fires are
SPRINEX mini unit
the elderly who are vulnerable to fires (standard specification)and more than 80 years old, who arelikely to find it difficult to evacuate by themselves. The
number of deaths is more than double during the nightcompared to during the day, with more than half of thosecaused by delays in evacuating. The key to protecting such
vulnerable people is just how fast fires can be extinguishedautomatically. Installation of conventional fire extinguishers
can be expensive, and the required electrical work makes it
difficult to install such systems in existing buildings.
The special specification “SPRINEX mini” operates onbatteries and can be installed easily, while fire warnings
change from buzzer sounds to voice warnings to make users
more aware of fires and a flashing light notifies people whoare hard of hearing about the risk of fire. This special
specification “SPRINEX mini” is part of the “Disaster
Prevention Community Support Tool” that is in operation by
the city, and the unit is being considered for installation in theresidential homes of the elderly living in the city.
Separate voice warning and flashing warning systems- Voice warning system- Flashing warning system

Warning! Fire!

03

M O R I TA R E P O R T 2 0 1 5

Lumbar Support Innerwear for Women “calena”
Just wearing it reduces strain on the lumber area
From December 24 last year, Morita started sales of “calena”
the lumbar support innerwear for women that was createdthrough collaboration with Nobutoshi Yamazaki,Professor
Emertius and Doctor of Engineering at Keio University and
GUNZE LIMITED. Since being announced in September lastyear, “calena” was exhibited at events such as the 41 st
International Home Care & Rehabilitation Exhibition, the 4thAgri World EXPO and HOSPEX Japan 2014 to showcase its
wide range of applications throughout the care welfare,agriculture, hospitals and other industries to great acclaim.
“calena” provides support to back muscles with tensile forces
generated by elastic fabric through body movement whenbending forward or in a half-bent posture that causes immense
lumbar stress. As innerwear for women, it feels loose and freeof tension that is important, in addition to its support
functions. “calena” is designed to provide daily support for
women who find themselves bending forward or in a half-bent
posture when doing tasks.
The product is marketed with the “rakunie” series of productsthat are mainly sold by Morita Miyata or Morita Econos of theMorita Group.

Lumbar support innerwear for women“calena”

Lumbar support wear
“rakunie”

M O R I TA R E P O R T 2 0 1 5

04

Announcement of New Model “Rotary
Electric Extrusion Garbage Collector E-SVN”
Morita Econos has developed a new model “Rotary Electric
Extrusion Garbage Collector E-SVN” that embodies theconcept of “Safer and easier to use. Urban-friendly!” which
will go on sale from September 1 this year.

Rotary Electric Extrusion Garbage Collector E-SVN

As a hybrid garbage collector, the E-SVN features the largest
body capacity in its class and up to 50 continuous operating
cycles to assist with improvements to work efficiency. The
sound level with the electric motor has been reduced to 67.7
dB as part of a community-friendly design when operating atnight. When operating in electric mode, there are zero exhaustgas emissions which make it ideal for work in areas not suited
to exhaust gases, such as underground garbage collection
areas. To reduce worker fatigue, the tailgate height and theoverall vehicle height are designed to be the lowest in its class.
With functionality to improve work efficiency and an
aesthetically appealing design, as well as outstanding safety
and operability to help contribute to local communities andtheir environment, the E-SVN has been engineered to excel ina vast range of situations as a rotary electric extrusion garbage
collector that is a showcase of technology from Morita
Econos.
Morita Econos will continue to apply customer feedback in its
pursuit of “Safer and easier to use. Urban-friendly!”05

M O R I TA R E P O R T 2 0 1 5

Top Message
We would first like to extend our deep appreciation for yourcontinued support for the Morita Group.
For our 82nd term report, we would like to provide you with abusiness overview report.

Business Overview
During this consolidated fiscal year under review, Japan’s
economy has seen improvement in corporate performance andthe employment situation due to the economic policies andmonetary easing implemented by the government and the
Bank of Japan. The economy is showing signs of slow
recovery, but with concerns about sluggish personal
consumption in the wake of the increase in consumption tax
and rising prices of imports due to a weaker yen, it still
remains in a state of future uncertainty.
In such an environment, the Morita Group has endeavored to
implement proactive business development and further cost
reduction while also developing new products as a way of
improving company performance.
The fire fighting vehicles business in particular remained
strong, with net sales of Morita Group for the consolidated
fiscal year increasing by ¥277 million compared to the same
period in the previous year to ¥71,943 million (+0.4%);
operating income increased by ¥1,546 million compared to thesame period in the previous year to ¥8,240 million (+23.1%);
and income before income taxes increased by ¥1,392 million
compared to the same period in the previous year to ¥8,375
million (+19.9%). Net income increased by ¥1,182 million
compared to the same period in the previous year to ¥4,709
million (+33.5%) after an impairment loss of ¥568 million
following sale of land that housed the former head office andfactor was recorded as an extraordinary loss. These were thehighest figures ever recorded for net sales, operating income,income before income taxes and net income over four
consecutive years.

M O R I TA R E P O R T 2 0 1 506

Performance by Segment
Fire Fighting Vehicles Business
The Fire Fighting Vehicles Business saw an increase in market
share and increased sales related to supplementary budget, with
net sales increasing by ¥2,421 million compared to the same
period in the previous year to ¥38,328 million (+6.7%).
Segment income increased by ¥1,319 million compared to thesame period in the previous year to ¥5,710 million (+30%).
Fire Protection Equipment & Systems Business
The Fire Protection Equipment & Systems Business showed steadysales of “SPRINEX,” the packaged automatic fire extinguishingequipment designed chiefly for medical facilities, with net sales
increasing by ¥980 million compared to the same period in theprevious year to ¥18,425 million (+5.6%). Segment income
increased by ¥100 million compared to the same period in theprevious year to ¥1,531 million (+7.0%).
Recycling Machines Business
The Recycling Machines Business increased sales of new
products and placed additional efforts made for parts andmaintenance sales, however a reduction in demand for guillotinepresses and other products saw net sales decrease by ¥500
million compared to the same period in the previous year to¥5,490 million (-8.3%). Segment income decreased by ¥81
million compared to the same period in the previous year to¥224 million (-26.5%).
Environmental Conservation Vehicles Business
The Environmental Conservation Vehicles Business had
favorable figures for orders and sales of garbage collectors,
however a slight reduction of demand in hygiene vehicles saw
net sales decrease by ¥28 million compared to the same period
in the previous year to ¥9,698 million (-0.3%). Segment income
increased by ¥92 million compared to the same period in theprevious year to ¥777 million (+13.4%).

07

M O R I TA R E P O R T 2 0 1 5

Issues to Address
The Morita Group will focus on increasing businesscompetitiveness as far as possible to maximize corporate value
by optimizing the distribution of management resources.
The management issues that the Morita Group faces and thesolutions that have been proposed are as outlined below.
(1) Flexible response to changing markets
In order to respond to drastically changing market trends
quickly and flexibly, the needs of customers will beidentified accurately to develop business strategies
before other companies.
The group is aware that in order to secure corporate
income and maintain continued growth, the key issue iscreating growth areas that differ to those in the past by
developing highly competitive products that no othercompanies are able to imitate, as well as uncover andcreate related business.
(2) Implement structure reform
The group will focus on restructuring its businesses,
carefully study unprofitable businesses, improve
productivity including related departments, and optimize
the assignment of personnel.
(3) Investments for continued growth
The group will distribute its management resources
appropriately and make decisions regarding equipment
investments, business partnerships and M&A at mostideal time, while also focus on securing and training
personnel responsible for leading future generations.
(4) Better governanceAs part of efforts to improve the governance structure
throughout the entire group, a “Compliance Committee”
will be established, training and education activities
developed, and efforts made to ensure more thoroughcompliance with legal systems in order to improve thegroup’s compliance system. Efforts will also be made toensure that all employees throughout the group are fully
aware of the company’s compliance policies.
In conclusion, we would like to take this opportunity to ask
our shareholders for continued support and encouragement.
June 2015

Kazumi Ogata
President
M O R I TA R E P O R T 2 0 1 508

Financial Highlights (Consolidated)●Net Sales●Ordinary Profit(Millions of yen)
80,00070,00063,694

67,14071,666

71,943(Millions of yen)
10,000
8,375

8,000

60,0006,429

50,000

6,000

6,983

5,256

40,0004,000

30,00020,0002,000

10,00002012.32013.32014.3●Net Income

2012.32013.32014.3●Return on Equity
4,709

4,000

12

10.2

3,527
2,803

2015.3(%)(Millions of yen)
5,000

3,000

0

2015.3

10

2,867

8.7
8.3

2,000

7.9

8

1,000
0

2012.32013.32014.32015.3●Shareholders’ Equity Ratio(%)

6

2012.32013.32014.32015.3●Interest-Bearing Liabilities(Millions of yen)60

20,000
55.3

50

48.6

15,00050.2

11,70844.8

10,820
9,375

10,000

6,502

40
5,000

30

09

2012.32013.32014.3

M O R I TA R E P O R T 2 0 1 5

2015.302012.32013.32014.32015.3

Consolidated Summary●Consolidated Balance Sheets

Morita Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2014 and 2015
Millions of yen

2014

2015

Assets¥ 42,081¥ 41,883

Property, plant and equipment

30,40230,132Intangible assets

1,571

521

Investments and other assets

11,49916,001¥ 85,553¥ 88,539

Current liabilities¥ 28,059¥ 27,796

Long-term liabilities

13,382

11,169Total liabilities

41,441

38,966

Common stock

4,746

4,746

Additional paid-in capital

4,331

4,331

Retained earnings

34,38738,810Current assets

Total assets
Liabilities

Net assets
Shareholders’ equity

Treasury stock, at cost
Total shareholders’ equity(235)(1,212)

43,22946,675

1,816

3,868

Accumulated other comprehensive income
Unrealized gains on available-for-sale securities

4(1)(1,804)(1,980)Foreign currency translation adjustments

287

508

Remeasurements of defined benefit plans

(557)

(74)

Total accumulated other comprehensive income

(254)

2,319

Deferred gains on hedges
Unrealized gains (losses) on revaluation of land

Minority interests in consolidated subsidiaries
Total net assets
Total liabilities and net assets

1,135

577

44,111

49,572¥ 85,553¥ 88,539(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.
M O R I TA R E P O R T 2 0 1 5

10

●Consolidated Statements of Income

Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2014 and 2015
Millions of yen

2014

2015

¥ 71,666¥ 71,943

Cost of sales
Gross profit

53,36818,29753,12818,814

Selling, general and administrative expenses
Operating income
Other income
Other expenses
Income before income taxes
Income taxes
Current
Deferred

11,603
6,694
716
1,683
5,726

10,574
8,240
693
1,209
7,723

2,781
(463)
2,318

3,475
(425)
3,049

Minority interests in losses of consolidated subsidiaries
Net income(119)¥ 3,527(35)¥ 4,709

Net sales

Yen

Per share of common stock
Basic net income
Diluted net income
Cash dividends applicable to the year

2014

2015

¥ 78.91—
18.00¥ 102.12—
20.00(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.

●Consolidated Statements of Cash Flows

Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2014 and 2015
Millions of yen

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation
Cash and cash equivalents at end of year

2014

2015

¥ 4,310(5,565)
1,939
90
776
8,748

¥ 4,501(3,101)(4,217)(27)(2,845)9,525—¥ 9,525(254)¥ 6,424(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.
11

M O R I TA R E P O R T 2 0 1 5

●Consolidated Statement of Changes in Net Assets(in Millions of yen)
Morita Holdings Corporation and Consolidated Subsidiaries
For the Year Ended March 31, 2015
Shareholders’ equity

Balance at beginning of year
Cumulative effects on changes
in accounting policies
Restated balance
Amount of change
Cash dividends
Net income
Acquisition of treasury stock
Disposal of treasury stockReversal of reserve forland revaluation
Net changes other thanshareholders’ equity
Total changes
Balance at end of year

Commonstock

Additional
paid-in
capitalRetainedearnings

Treasurystock, at
cost

Total
shareholders’equity

4,746

4,331

34,387(235)

43,229

285
4,746

4,331

34,673285(235)

43,515

(977)
0

(833)
4,709
(977)
0

(833)
4,709
0
260

—
4,746

0
4,331

4,137
38,810260(977)(1,212)

3,159
46,675

Accumulated other comprehensive income
Unrealized
Unrealized
Remea- Total Minority Total
gains on Deferred gains Foreign surements accumulated interests in net
currency
available- gains on (losses) on translation of defined other com- consolidated assets
for-sale hedges revaluation adjustments benefit prehensive subsidiaries
securitiesof landplans income

Balance at beginning of year
Cumulative effects on changes
in accounting policies
Restated balance
Amount of change
Cash dividends
Net income
Acquisition of treasury stock
Disposal of treasury stockReversal of reserve forland revaluation
Net changes other thanshareholders’ equity
Total changes
Balance at end of year

1,816

4 (1,804)

287 (557) (254) 1,135 44,111
285

1,816

4 (1,804)

287 (557) (254) 1,135 44,397
(833)
4,709
(977)
0
260

2,051

(5) (175)220

482 2,573 (558) 2,015

2,051
3,868

(5) (175)(1) (1,980)

220
508

482 2,573 (558) 5,175(74) 2,319 577 49,572(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.
M O R I TA R E P O R T 2 0 1 5

12Company Profile
Overview
Company Name

MORITA HOLDINGS CORPORATION

Inauguration of Business

April 23, 1907

Establishment

July 23, 1932

Capital¥4,746 mil.

Osaka Head Office

3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka

Tokyo Head Office

3-25-31 Nishishinbashi, Minato-ku, Tokyo

Type of BusinessControl/management of business activities of group companies,
and being entrusted with indirect management operations

Group Companies

13

MORITA
CORPORATION

1-5 Techno Park, Sanda-shi, Hyogo, 669-1339, Japan

MORITAMIYATA
CORPORATION

1-1-1 Shimomachiya, Chigasaki-shi, Kanagawa,
253-8588, Japan

MORITAENVIRONMENTALTECHCORPORATION

1530 Konoda-cho, Funabashi-shi, Chiba,274-0081, Japan

MORITAECONOSCORPORATION

1-48 Jinmu-cho, Yao-shi, Osaka, 581-0067, Japan

MORITATECHNOSCORPORATION

32 Techno Park, Sanda-shi, Hyogo, 669-1339,
Japan

Development, manufacturing and sales of ladder trucks, fire
trucks and other types of fire trucks and specialty vehicles

Development, manufacturing and sales of fire
extinguishing-related equipment, mainly of fire
extinguishers, firefighting equipment and other fire
protection equipment

Design and construction of waste recycling facilities andother waste disposal facilities. Development,
manufacturing and sales of large hydraulic equipment
Development, manufacturing and sales of environmental
conservation vehicles such as sanitation vehicles andgarbage trucks

Aftercare service and maintenance of fire trucks and of
equipment and materials for lifesaving. Development,
manufacturing and sales of electronic applied machineryand information processing machinery

M O R I TA R E P O R T 2 0 1 5

ALUVO
1479-1 Kamikanzo, Iwata-shi, Shizuoka,
CORPORATION
438-0115, JapanKANSAI BODY WORKS 2-3 Techno Park, Sanda-shi, Hyogo, 669CORPORATION
1339, Japan
MORITA U.G.
Shiba 256 Square Building 8F, 2-5-6
CORPORATION
Shiba, Minato-ku, Tokyo, 105-0014, Japan
MORITA ENGINEERING
1-48 Jinmu-cho, Yao-shi, Osaka 581CORPORATION
0067, Japan
HOKKAIDO MORITA
13-2-17 Naebo-cho, Higashi-ku, SapporoCORPORATION
shi, Hokkaido, 065-0043, JapanKAGOSHIMA MORITA
12-32, Matsubara-cho, Kagoshima-shi,
PUMP CORPORATION
Kagoshima, 892-0833, Japan
MORITA TOYO
1700-2 Konjinzuka, Sanagu-cho, Iga-shi, Mie, 518CORPORATION
0001, JapanMIYATA CYCLE
Sumitomo Life Insurance Kawasaki Building 8F, 11-27 Higashida-cho,
CO. LTD.
Kawasaki-ku, Kawasaki-shi, Kanagawa, 210-0005, Japan
No.1515, Lizheng Road, Shuyuan Town, Pudong
SHANGHAI JINDUN SPECIALVEHICLE EQUIPMENT CO., LTD. New Area, Shanghai, China, 201304

NANJING CHENGUANG MORITAENVIRONMENT PROTECTIONSCIENCE & TECHNOLOGY CO., LTD
SICHUAN MORITA FIRE
SAFETY APPLIANCESLIMITED COMPANY
MORITA HOLDRICH (HONG
KONG) COMPANY LIMITED

No.188 Tianyuanzhong Road, Jiangning
Economic & Technical Development Zone,
Nanjing, China, 211100
No.8, Xinhua Avenue, Chengdu CrossStraits Technological Industry Park,
Wenjiang District, China, 611130
Level 12, 28 Hennessy Road, Wanchai,Hong Kong

Executives
ChairmanPresident
Director
Director
Director
Full-Time Corporate Auditor
Full-Time Corporate Auditor
Full-Time Corporate Auditor
AuditorMasahiro Nakajima
Kazumi Ogata
Yukihiro Maehata
Kazumi Kawaguchi
Toru Matsuo
Eiji Asada
Atsushi Sasaki
Yusuke Takano
Masaru Ota

Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer

Hiroko Urano
Naohisa Sakamoto
Shinichi Kanaoka
Shinya Murai
M O R I TA R E P O R T 2 0 1 5

14Shareholder’s Memo
Information about the StockBusiness Year

April 1st to March 31st

Annual General Meeting Juneof Shareholders
Reference
Dates

Annual General Meeting of Shareholders - March 31stYear-end Dividend - March 31st
Interim Dividend - September 30th
Other dates published in advance as necessary

Posted on company website
Method of
Public Notice http://www.morita119.com/kohkoku/index.html
Administrator of the
Shareholders List

Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Stock Transfer Agency Department, Sumitomo
Place ofClerical Office Mitsui Trust Bank, Limited
for the above 4-5-33, Kitahama, Chuo-ku, Osaka-shi, Osaka(Postal Address)

Stock Transfer Agency Department, Sumitomo
Mitsui Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo, 168-0063(Telephone Inquiries) +81-120-782-031(Internet Website URL)

http://www.smtb.jp/personal/agency/index.html
Stock Listing

Tokyo Stock Exchange[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository Center, Inc.)
before the share certificates were computerized, an account (a special account) has
been opened with Sumitomo Mitsui Trust Bank, Limited, the administrator of theshareholders list. For details regarding the special account, notification of addresschange, and so on, please contact the telephone inquiry number listed above.

[Notification of Address Change and Inquiries]
For shareholders who have an account at a securities firm, please contact the firm
where your account was established for notification of address change and so on.
For shareholders who do not have an account at a securities firm, please contact
the telephone inquiry number listed above.
Osaka Head Office 3-6-1 Dosho-machi, Chuo-ku,
Osaka-shi, Osaka, 541-0045,
Tel. +81-6-6208-1907
Tokyo Head Office 3-25-31 Nishishinbashi,
Minato-ku, Tokyo, 105-0003,
Tel. +81-3-5777-5777

http://www.morita119.com